Rupee snaps three-day fall on good dollar inflows

MUMBAI Wed May 28, 2014 5:11pm IST

An employee poses with the bundles of rupee notes inside a bank in Agartala, August 22, 2013. REUTERS/Jayanta Dey/Files

An employee poses with the bundles of rupee notes inside a bank in Agartala, August 22, 2013.

Credit: Reuters/Jayanta Dey/Files

Related Topics

Border Security Force (BSF) soldiers ride their camels as they rehearse for the "Beating the Retreat" ceremony in New Delhi January 27, 2015. REUTERS/Ahmad Masood

"Beating The Retreat" Rehearsals

Rehearsals are on for "Beating the Retreat" ceremony which symbolises retreat after a day on the battlefield, and marks the official end of the Republic Day celebrations.  Slideshow 

MUMBAI (Reuters) - The rupee snapped a three-day losing streak on Wednesday as dollar inflows related to foreign funds and companies helped offset heavy month-end demand for the greenback from oil and other importers.

Traders also cited occasional dollar buying by the Reserve Bank of India, although the intervention was not believed to be as aggressive as in recent weeks.

Traders will continue to focus on the measures new Prime Minister Narendra Modi led government will take to bring down the fiscal deficit and fight inflation.

"There was good dollar selling seen today, likely some corporate flows as well. Foreign banks were mostly on the sell side while there were importers and state-run firms seen bidding," said A. AjithKumar, a foreign exchange dealer with Federal Bank.

"There is a good technical support for the pair at 58.35 levels which the central bank defended last time. If that level is broken we could see the pair fall more, if not, we could head back towards 59.50 again," he added.

The partially convertible rupee closed at 58.93/94 per dollar compared to 59.04/05 on Tuesday.

Foreign investors have bought a net $1.46 billion in debt over the past four sessions, bringing their total buying so far this month to $3 billion. In shares, despite some modest selling over the past few sessions, net inflows in May are $2.4 billion.

In the offshore non-deliverable forwards, the one-month contract was at 59.21 while the three-month was at 59.76.

(Editing by Sunil Nair)

FILED UNDER:
Photo

After wave of QE, onus shifts to leaders to boost economy

DAVOS, Switzerland - Central banks have done their best to rescue the world economy by printing money and politicians must now act fast to enact structural reforms and pro-investment policies to boost growth, central bankers said on Saturday.

EARNINGS

Reuters Showcase

Vodafone Ruling

Vodafone Ruling

Government will not appeal Vodafone tax ruling   Full Article 

Indian Railways

Indian Railways

Private refiners compete with state firm to sell diesel to railways   Full Article 

Facebook Results

Facebook Results

Facebook tops Wall Street revenue target in 4th quarter.  Full Article 

Tackling Deficit

Tackling Deficit

Government makes push to boost revenue as deficit deadline nears.  Full Article 

Ranbaxy Results

Ranbaxy Results

Dec-quarter net loss widens on forex loss  Full Article 

Tech Talk

Tech Talk

Apple takes high road in China smartphone standoff with Xiaomi.  Full Article 

Business Strategy

Business Strategy

Uber scraps commissions for its New Delhi taxis.  Full Article 

Job Cuts

Job Cuts

Sony to cut 1,000 jobs in smartphone business - sources.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage